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Egg prices, feed costs, and the decision to molt
1University of Northern Colorado, Department of Economics, Greeley 80639, USA.
Poultry Science
|October 6, 2000
Summary
Egg producers use forced molting to manage production based on economic factors. This study found that lower egg prices significantly influence the decision to molt, indicating a response to market conditions.
Area of Science:
- Agricultural Economics
- Animal Science
- Poultry Production
Background:
- A petition in 1998 questioned the practice of forced molting in laying hens.
- Forced molting is a management technique used by egg producers.
- The economic drivers behind forced molting warrant investigation.
Purpose of the Study:
- To investigate the economic importance of forced molting.
- To determine if forced molting is used as a response to egg prices and feed costs.
- To analyze the relationship between market prices and molting practices.
Main Methods:
- Ordinary least squares regression analysis was employed.
- Examined the relationship between egg prices, feed costs (corn and meal), and molting percentage.
- Data was analyzed across five distinct US shell egg-pricing regions.
Main Results:
- A significant inverse relationship (P < 0.05) between egg prices and molting percentage was observed in four of five regions.
- Producers appear to be influenced by current egg prices when deciding to molt.
- The relationship between feed costs and molting was less clear, with statistical significance in only one region.
Conclusions:
- Egg producers utilize forced molting as an economic tool, primarily influenced by current egg prices.
- Market price signals play a significant role in the adoption of this production management strategy.
- Further research may be needed to clarify the impact of feed costs on molting decisions.